ALBANY — The Honest Weight Food Co-op in Albany is seeking $1.5 million in tax breaks for its new store planned for West Albany.

Honest Weight recently lined up financing for the $5.4 million building, which will be built on property at 100 Watervliet Ave. that the 8,000-member co-op purchased in 2007.

The Albany Industrial Development Agency held a public hearing on Thursday on a package of tax breaks for the new store that would include a state sales and use tax exemption of $150,000 and property tax exemptions of $1.4 million.

The IDA board could vote on the project at its next meeting scheduled for July 19, said Michael Yevoli, the IDA's chief executive officer.

"There weren't really any negative comments," Yevoli said of the public hearing. "It seems to be moving in a favorable direction."

Honest Weight is planning a 30,000-square-foot grocery store that will include 18,000 square feet of retail space as well as a teaching kitchen, a large cafe and community space.

Honest Weight's current store is located on Central Avenue in space that is difficult to see from the road and lacks adequate parking.

In the co-op's application to the IDA, the group says that the local marketplace for supermarkets is "evolving rapidly." With the addition of Trader Joe's and Whole Foods in Colonie, the new building will "dramatically" improve its ability to retain its existing customer base and attract new fans. The store will also be easy to reach from both the city of Albany and I-90 from Everett Road.

The co-op also says that the project — which with design fees and other expenses will eventually cost $9 million — will have an economic impact on the city greater than the $1.5 million in tax breaks.

Wages for 200 construction jobs involved in the project are expected to top $1.7 million, and the co-op says it will have to hire an additional 30 employees on top of its existing staff of more than 80. Workers there make between $10 and $16 an hour.

Now Playing:

"We do believe that Honest Weight returns significant value to our community," said Alexandra Juhre, part of the three-person management team at the co-op. "As a local cooperatively owned business, all profits from the business remain in the local economy."